As a business owner, you have a lot of responsibilities on your plate. One of the most important – and often overlooked – tasks is filing your taxes. Many business owners try to save money by doing their own taxes, but this can often be a mistake, and (even though you have to pay) you’ll usually actually end up saving more money by hiring a CPA to review your tax situations and to file your return for you.
Here are five benefits of hiring a CPA to file your taxes for your business:
- Save time: Filing taxes can be time-consuming, especially if you’re not familiar with the process. By hiring a CPA, you can free up some of your time so that you can focus on running your business.
What might take you hours and hours to look over and input into a return, could take a good CPA only an hour or two, because they know exactly what they’re doing and exactly what to look for. They’ll also be able to pinpoint deductions and credits that could apply to your business much more quickly than you might be able to on your own.
So, not only will you save time by not having to do all of the work yourself, you’ll probably get your return filed more quickly, which means that you can get that nice tax refund into your bank account sooner than you might have thought!
- Avoid mistakes: Mistakes on your tax return can lead to costly penalties and interest charges. A CPA will make sure that your return is filed correctly and that you receive the maximum amount of tax deductions and credits.
A great comparison for this would be something like working on electrical fixes in your home. If you do this yourself, you are running the risk that you will wire things incorrectly or in a manner that isn’t safe. This could lead to you not having the same level of power in certain areas of your home or not having power at all! It also has the potential to cause fires or other dangerous circumstances for you and your family. Unless you know what you’re doing, it might not be worth the risk just to save yourself a little bit of money.
The same can be said for your taxes! Filing your taxes incorrectly isn’t going to make your house burn down.. But it can certainly cause unnecessary stresses to pop up in your life down the road. Tax penalties can be rather harsh, and you want to avoid them at all costs. Hiring a CPA will mitigate the potential that your return is filed with mistakes.
- Get expert advice: A CPA can provide you with expert advice on complex tax issues, such as setting up a retirement plan or investing in a business.
Taxes can get tricky!
Let’s just say that the IRS did not necessarily design tax law with the ease of the consumer in mind.
Again, hiring a CPA will help decrease your risk that you are filing incorrectly, but this point is a little different. You can still file your taxes correctly and not file them in the most advantageous way. There are some things that you just might not know about or that you do know about but don’t know the full story. Hiring a CPA will help you ensure that the positions you’re taking on tax matters are going to be the most in your favor that they can be.
- Save money: A CPA can help you save money on your taxes by recommending tax-saving strategies specific to your business.
Hiring a CPA isn’t a cheap thing to do. They have a lot of education and experience behind them, which generally costs a pretty penny.
However, even though you’re going to spend some money on their services, the entire point of their services is to actually save you money! You might pay $1,000 for a few hours of their time to file your return for you, but that could end up saving you $5,000 in taxes that you would have just accepted that you had to pay without having the CPA to look things over. At the end of the day, that’s a net value add of $4,000!
I don’t know about you, but I’d much rather pay $1,000 to save $5,000 than to have to do all of that work myself AND have to end up paying that $5,000 straight to the government!
- Peace of mind: Knowing that your taxes are filed correctly and that you’re taking advantage of all the tax deductions and credits available to you can give you peace of mind.
Taxes and the filing of those taxes is one of the most stressful times of the year for most people. It is time consuming, daunting, and generally just terrible to deal with. You can spend hours doing your own tax work, end up having to pay thousands in taxes, and you still might not be able to sleep at night wondering if you filed everything correctly.
Good news for you – CPAs exist for this very reason! They can help you by taking that stress off of you and allowing you to regain your peace of mind in knowing that your taxes have been filed correctly.
The benefits of hiring a CPA to file your taxes are pretty clear – by choosing a professional, you can save time, money and hassle. So why take the risk and try to do it yourself? Get the expert assistance you need to ensure that your taxes are filed correctly and that you receive the maximum tax benefits.
If you are considering hiring a CPA to file your taxes, be sure to ask about their experience with small businesses. Ask for references and check with the Better Business Bureau to make sure they’re reputable. Once you’ve found a CPA that you’re comfortable with, provide them with all the necessary documentation and information so that they can prepare your return accurately and file it on time.